Sanjay Malhotra, Governor of the Indian Reserve Bank (RBI), during a press conference in Mumbai, India, on Wednesday, December 11, 2024. Politics in its role. Photographer: Dhiraj Singh/Bloomberg via Getty Images
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The Indian Reserve Bank reduced the main interest rate for the first time in nearly five years, as the cooling enlargement provided an area to stimulate the slow economy.
RBI Sanjay Malhotra said in a speech on Friday that the Monetary Policy Committee decided to trim the ribau rate by 25 basis points to 6.25 %.
The price reduction was widely expected and the first interest rate of RBI since May 2020 when the country clashed with the recession in the epidemic.
The standard ribo rate has been fixed at 6.5 % over the past two years, as the local inflation rate has been higher than the 4 % central bank.
After a peak in OctoberConsumer price inflation in India, as it decreased inside the ceiling of tolerance with the central bank by 6 %. Next In 5.22 % in December and 5.48 % in November.
The Indian government steadily reduced the real GDP expectations for the entire year, after economic growth I missed expectations With a large margin in the quarter ending in September, when it grew by 5.4 % – the slower expansion of nearly two years.
The latest dropping last month reduced growth estimates to The current fiscal year to 6.4 % from 7.2 % in Octoberand The worst in four years, while the dropping of inflation was It raised to 4.8 % compared to 4.5 % earlier.
With a rupee shed the record against Greenback, any discounts in the price of the bank's policy may raise an additional increase in local inflation, which leads to more pressure on the currency and most likely leads to capital flows.
RBI has Act to implement large interventions In the foreign exchange market to help expand possible sudden flows of foreign capital and avoid any sharp decrease in the currency.
This is urgent news. Please update for updates.
